The Securities Appellate Tribunal (SAT) on Friday rejected Reliance Industries' (RIL) plea against a showcause notice issued by the capital market regulator, thereby disposing of the three-year-old matter pertaining to alleged insider trading case involving the company. RIL claimed that the regulator had not provided sufficient access to the documents on the basis of which the notice was issued. Sebi once again agreed to submit the documents to RIL by December 23, even as the tribunal affirmed the regulator had given documents it could rely upon in the case.
The tribunal will hear RIL's second case pertaining to consent plea on January 6. In the second appeal, RIL has challenged Sebi's decision to keep the case out of consent mechanism. In May 2012, Sebi tightened the norms for settlement through the consent framework as a result of which many cases, including those related to insider trading, are now not eligible to be settled through the route.
Earlier, SAT had suggested that Sebi consider RIL’s consent application — a process that allows companies and individuals to settle disputes by paying a sum without admission or denial of wrongdoing. Sebi, however, declined to consider an application by RIL to settle the case of alleged insider trading, leaving it on the tribunal to make a decision.
SAT has been hearing the insider trading case since 2010. The tribunal's presiding officer, JP Devadhar had raised concerns over frequent adjournments sought by both the parties at previous hearing.